Mumbai: Kerala-based Muthoot Finance Ltd is planning to raise as much as 500 crore by selling non-convertible debentures (NCDs) to the public in an issue which has opened on Monday and could close on or before 7 October, the company said in a statement.

“The funds raised through this issue will be used for our various financing activities including lending and investments, to repay our existing loans and our business operations including for our capital expenditure and working capital requirements" Muthoot said in the release, adding that the coupon rate on the issue will range from 8.75% to 9.50% at a tenure ranging from 400 days to five years.

The minimum amount for the issue is 250 crore with a greenshoe option of another 250 crore.

ICICI Securities Ltd and Edelweiss Financial Services Ltd will manage the sale.

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